IS.
IS. >>> ♪
>>> ♪ ♪
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♪ >>> ALI CAN DANCE LIKE THAT GUY.
THAT WAS ONE OF THE MANY
COMMERCIALS THAT HAVE BEEN AS
ICONIC AS THE PRODUCTS THEY
SELL.
SELL. APPLE BECAME THE FIRST PUBLICLY
TRADED COMPANY IN U.S. HISTORY
TO HIT $1 TRILLION BUCKS IN
VALUE.
VALUE. THAT’S 1 WITH 12 ZEROS AFTER IT.
TO PUT THINGS IN SPROOIFPERSPECT
GDP IS VALUED AT JUST OVER 20
TRILLION.
TRILLION. APPLE’S VALUE IS 5% OF THE
OVERALL ECONOMY.
OVERALL ECONOMY. IT IS REMARKABLE FOR A COMPANY
THAT WAS ONLY STARTED IN 1976 BY
STEVE JOBS AND STEVE WAS-- THIS
BACK WHEN CONSUMER COMPUTERS
WERE CONSIDERED A VERY SMALL
MARKET.
MARKET. MOST COMPUTERS THEN WERE GIANT
MACHINES IN UNIVERSITIES
COOPERATIONS OR GOVERNMENT
BUILDINGS.
BUILDINGS. IN 1984, THE MACKINTOSH CAME
OUT.
OUT. FOR MANY IT WAS AN EVER PRESENT
MACHINE FIGHTING FOR SPACE WITH
THE LIKES OF IBM LAUNCHED WITH
THIS ICONIC AD FROM SUPER BOWL
18.
>> ON JANUARY 24, APPLE COMPUTER WILL INTRODUCE McINTOSH AND
YOU’LL SEE WHY 1984 WON’T BE
LIKE 1984.
LIKE 1984. >> LET’S GET DEPRESSED, STOCK
PICKERS, IF YOU MISSED THIS ONE.
IF YOU BOUGHT APPLE STOCK BACK
IN THE 80’s, SAY $1,000.
IT WOULD HAVE GROWN TO HALF A
MILLION BY TODAY.
OVER THE YEARS THEY RELEASED
NEWER COMPUTERS.
NEWER COMPUTERS. AND AS THE COMPANY GREW, IT
BRANCHED OUT TO DEVICES FAR
BEYOND COMPUTERS, FROM iPODS
LAUNCHED BACK IN 2001 TO THE
iPHONE WHICH WAS SIX YEARS
LATER.
LATER. iPADS IN 2010 AND NOW APPLE
WATCHES.
WATCHES. THE COMPANY HELPED DIGITIZE AND
DEVICE-A FI.
DEVICE-A FI. OUR DAILY LIFE.
WITH THAT IS MARKETING, THE LOGO
EVOLVING OVER THE YEARS AND ADS
LIKE THE FAMOUS I’M A MAC, I’M A
PC JAB WHICH IS AIMED AT THE
COMPETING OPERATING SYSTEM.
IT HAS BECOME AN EVER PRESENT
PART OF YOUR LIVES.
JUST ON OUR SHOW TEAM ALONE.
I’M NO THE SAYING ANYONE IS AN
APPLE ENTHUSIAST.
APPLE ENTHUSIAST. IT INFILLTRATED OUR SYSTEM.
WE GOT OVER 100 APPLE PRODUCTS
BETWEEN THE 16 PEOPLE ON OUR
TEAM.
TEAM. MORE THAN 17 DIFFERENT DEVICES.
WE AND OUR FAMILIES CURRENTLY
USE.
USE. THIS MORNING WE SPOKE TO CHIEF
MARKETING OFFICER AT RX ADVANCE,
JOHN SCULLY, WHO IS THE CEO OF
APPLE AT A FORMATIVE TIME OF THE
BUSINESS THAT FROM 1983 TO 1993.
>> BEFORE WE GO TO THAT, I
JUST -- HAVE TO SHOW YOU THESE
BOLD -- THIS ONE.
THIS IS ONE OF THE FIRST LAPTOPS
THEY HAD.
THEY HAD. WHEN IT WAS STILL CALLED A
McINTOSH.
McINTOSH. THIS WAS THE POWER BOOK DUE YO.
AND THEN LOOK AT THIS ARRAY OF
iPODS WE HAVE UP HERE.
>> BUT ALI, THE THING THAT’S SO
INTERESTING.
INTERESTING. THINK ABOUT WHEN WE TALK ABOUT
THE PEOPLE ON OUR TEAM THAT USE
APPLE.
APPLE. THESE ARE EXPENSIVE HIGH MARGIN
PRODUCTS, BUT THE HOOK APPLE
FIGURED OUT, ONCE YOU’RE IN THAT
ECOSYSTEM, YOU BUY OTHER STUFF.
IT’S MASSIVE.
IT’S MASSIVE. >> THEY WANT $1,000 FOR THE NEW
PHONE.
PHONE. I WAS DEFINITELY ONE OF THOSE
PEOPLE WHO SAID IT’S GOING TO
SLOW DOWN.
SLOW DOWN. THIS IS A 6.
BUT I DON’T ACTUALLY THINK I
NEED ANYTHING MORE FOR IT TO DO
BUT THE BOTTOM LINE IS THE
DESIGN AND EASE OF USE IS REALLY
WHAT WAS BEHIND THE COMPANY
BECAUSE REMEMBER, WHEN APPLE
STARTED, AND WHEN JOHN SCULLY,
WHO WE’RE ABOUT TO TALK TO, WAS
THERE, THE INTERNET DIDN’T EVEN
EXIST.
EXIST. YOUNG PEOPLE, THAT WASN’T --
BACK -- THAT WAS NOT THAT LONG
AGO.
AGO. WE ASKED JOHN SCULLY, LOOKING
BACK FROM HIS INTERNET OF THINGS
ERA, WHAT WERE THEY BUILDING AND
FOR WHOM?
FOR WHOM? >> WELL, ACTUALLY, THE WORLDWIDE
WEB BEGAN SEVERAL YEARS AFTER I
LEFT APPLE.
LEFT APPLE. SO THE WHOLE TIME I WAS THERE,
IT WAS BASICALLY THE VISION OF
STEVE JOBS THAT NO ONE ELSE IN
THE WORLD AGREED WITH.
THAT WAS HE SAID BACK IN THE
EARLY 80’s THAT COMPUTERS ARE
GOING TO HAVE A GREAT FUTURE FOR
NON TECHNICAL PEOPLE WHO DIDN’T
KNOW HOW TO REALLY USE
COMPUTERS, SO THEREFORE THEY HAD
TO BE SIMPLE TO EASE AND VERY
WERE GOING TO FOCUS ON
PHOTOGRAPH FICSGRAPHICS.
PHOTOGRAPH FICSGRAPHICS. I THINK A GOOD DEFINITION OF
GENIUS IS BEING ABLE TO SEE THE
OBVIOUS 20 YEARS AHEAD OF THE
REST OF US.
OBVIOUSLY
OBVIOUSLY >> EVEN BEYOND APPLE, LOOK AT
THE OUTSIZED POWER FANG --
FACEBOOK, APPLE, NETFLIX,
GOOGLE -- THESE COMPANIES HAVE,
HOW MASSIVE THEY ARE AND
OUTWEIGHING THESE COMPANIES ARE
OVER OTHER COMPANIES.
>> IT’S ALL TECH.
>> I DON’T SEE IT SLOWING DOWN,
OBVIOUSLY.
OBVIOUSLY. IT’S ALL ABOUT LAND GRAB.
U.S. COMPANIES ARE MASTERS AT
BEING ABLE TO PICK A VISION,
FOCUS ON IT, AND SCALE IT.
THE CHALLENGE WE’RE NOW SEEING
IN CHINA THAT THEY LEARNED TO DO
SOMETHING THAT WE DON’T KNOW HOW
TO DO YET, AND THAT IS WHAT I
CALL SPEED TO SCALE.
THAT MEANS THAT IF YOU LOOK AT A
COMPANY LIKE OFO, A BIKE RENTAL
COMPANY IN CHINA, STARTED JUST A
COUPLE OF YEARS AGO, THEY NOW
RENT 35 MILLION BICYCLES A DAY.
AND THEY’RE PROJECTING NEXT YEAR
THEY’LL BE RENTING 300 MILLION
BICYCLES A DAY.
WE DON’T KNOW HOW TO BUILD A
COMPANY THAT FAST.
THERE ARE SKILLS THAT WE HAVE
WITH INNOVATION OF TECHNOLOGY,
BUT TECHNOLOGY IS COMMODITIZING
SO RAPIDLY, THE CHINESE ARE
SAYING THEY DON’T CARE ABOUT WHO
OWNS THE INTELLECTUAL PROPERTY,
THEY’LL JUST USE IT EVEN IF IT’S
OURS.
OURS. BUT THEY UNDERSTAND SPEED OF
SCALE IN THEIR VERY LARGE
DOMESTIC MARKET.
DOMESTIC MARKET. SO THE GROUND RULES OF
COMPETITION, EVEN IN TECH, ARE
STARTING TO CHANGE ON A GLOBAL
SCALE.
SCALE. >> WHAT DO YOU MAKE OF APPLE’S
ABILITY TO WIN OUR LOYALTY?
TODAY WE’RE NOT LOYAL TO MANY
COMPANIES.
COMPANIES. BUT ONCE YOU BECOME AN APPLE
USER, ONCE IT IS IN YOUR HOME,
IT’S A HARD SYSTEM TO QUIT.
>> WELL, IT HAS VERY LITTLE TO
DO WITH TECHNOLOGY.
IT HAS EVERYTHING TO DO WITH
EXPERIENCED MARKETING.
EXPERIENCED MARKETING. AND WHEN STEVE JOBS RECRUITED ME
TO APPLE, I DIDN’T KNOW ANYTHING
ABOUT COMPUTERS.
ABOUT COMPUTERS. BUT HE WAS IMPRESSED WITH THE
FACT THAT DURING THE COLA WARS
OF THE 1970s, THAT PEPSI HAD
BEEN OUTSOLD TEN TO 12 TO ONE BY
COCA-COLA IN 50% OF THE UNITED
STATES YET BY THE END OF THE
DECADE, PEPSI HAD BECOME THE
LARGEST SELLING CONSUMER PRODUCT
IN THE WORLD, OR IN THE UNITED
STATES.
STATES. AND THE WAY WE DID THAT WAS, WE
SAID COCA-COLA OWNS REALITY.
PERCEPTION LEADS REALITY.
WE’VE GOT TO OWN PERCEPTION.
SO WE CREATED THE PEPSI
CHALLENGE, WE DID OTHER THINGS
TO OWN THE EXPERIENCE.
AND STEVE SAID, YOU’VE GOT TO
TEACH ME HOW TO DO THAT BECAUSE
I’M BUILDING THIS EXPERIENCE
PRODUCT.
PRODUCT. AND APPLE DOES IT TODAY.
IT’S ALL ABOUT THE EXPERIENCE.
THAT’S WHAT LOCKS IN THE LOYALTY
WITH CONSUMERS.
WITH CONSUMERS. GREAT DESIGN, GREAT EXPERIENCE,
GREAT MATERIALS, GREAT, YOU